In the crypto world, DeFi (decentralized finance) generates feelings similar to those felt during the 2017/18 ICO boom, when a rush of new companies sprang onto the scene, each promising fresh innovation and use cases.

In retrospect, we can see that the vast majority of such projects failed or were outright scams that preyed on unscrupulous investors looking for a fast buck. Obviously, this does not apply to all projects, and many teams are still working on and delivering their distinct goals today. Cryptography is, after all, still a large-scale technological experiment.

Serum, the world’s first decentralized derivatives exchange, is one of the most exciting initiatives in the crypto sector. It provides trustless cross-chain trading and intends to build a decentralized exchange.

By placing orders on the Solana-based Blockchain, the Serum token appears to be exciting. However, the order book may just as easily be filled using classic rate-limiting systems.

Sounds Interesting? Do you want to invest in Crypto Derivatives?

While hungry yield farmers are preoccupied with food-themed DeFi protocols, Project Serum won’t be sitting about. Instead, it will discreetly develop a future-proof DeFi environment.

This article will discuss what SRM is, how SRM works, and Serum (SRM) price prediction for 2021 and the next five years.

What Is Serum (SRM)?

Sam Bankman-Fried and experienced ETFs trader founded Serum. He also started Alameda Research, a cryptocurrency trading firm, shortly after leaving Jane Street in late 2017.

Sam launched the FTX Bitcoin derivatives exchange in 2019. He’s also been a long-time member of the DeFi community. Some people consider him the community leader of the famed SushiSwap DEX.

Sam and the rest of the FTX Exchange team were debating whether or not to develop a DeFi protocol. They intended to build a DEX, but they knew it wouldn’t be possible on Ethereum because of the network-intensive features they wanted. Because of its efficiency, the Serum team chose Solana (SOL), a blockchain, after analyzing a number of Blockchains.

The serum is one of the most important projects on the Solana platform, and it works with both ETH and BTC. Unlike other DEXs, Serum offers order book-based trading, which is similar to those of centralized Cryptocurrency exchanges.

The current TPS of the underlying Solana Blockchain is 50-65 000 transactions per second, therefore it can handle that.

Currently, the Serum DEX has roughly 30 distinct Cryptocurrency markets, all of which trade against USDC. Using the instructions on Serum Academy, anyone may build their own DEX to accommodate more trading pairs.

There are currently, over 18 Serum DEXes available, and the Serum DEX may be accessed using the Coin98 mobile app for Android and iOS smartphones.

Moreover, the maximum quantity of SRM was capped at around 10 billion at the time of launch, with approximately 175 million tokens to be circulated and increasing to 181 million tokens after the IEO.

How Serum (SRM) Works?

It is important to remember that the Serum DEX is still in development, and its functionality will be determined by its future position in Project Serum. The three primary processes that support the Serum DEX are as follows:-

• Solana’s SPL token standard
• Serum’s interoperability protocol
• Serum’s SRM Cryptocurrency token

SRM is a type of cryptocurrency that can be staked and used to pay fees. This allows SRM holders to save up to 50% on all trading fees. Furthermore, 90% of all SRM tokens are meant for long-term storage or lock-up. This is done in order to ensure that the team will last a long period.

The SRM Cryptocurrency will be discussed in-depth in the next section.

SRM Cryptocurrency

On the Solana Blockchain, SRM is an SPL token, and on the Ethereum Blockchain, it is an ERC-20 token. It is primarily used for staking on the Serum DEX in Project Serum’s DeFi ecosystem.

Staking SRM is necessary to run a Serum DEX’s validator node, and it can also be staked to lower DEX trade fees. One MegaSerum (MSRM) can be obtained by converting one million SRM tokens.

MSRM holders receive additional benefits, and hosting a validator node is required and MSRM is also available as an ERC-20 token. SRM is used to manage the Serum DEX and future DeFi protocols inside Project Serum’s environment. With 68 percent of Serum fees, the SRM coin can be purchased and burnt.

Serum USD and Serum BTC

Serum USD is a decentralized stable coin (wrapped) with no single point of failure that follows both SPL and ERC-20 tokenizations for USD.

Serum BTC is a utility token (wrapped) having a price that is linked to the underlying asset or BTC form. It’s also a Solana-based BTC token that’s completely decentralized.

Price Analysis of the SRM

Flashback: Historical Price Analysis of SRM

Serum ($SRM) is a game-changing coin that will reconstruct the decentralized derivatives market and DeFi network. It offers a user-friendly UI, and cross-chain connectivity, as well as a full limit order book DEX.

Serum (SRM) began trading on multiple exchanges on August 11, 2020, including Uniswap, Binance, and others. SRM prices jumped to $1.25 in the first 30 minutes of this news. Later, it attempts to break the $2.00 barrier on the morning of August 12th, 2020.

These fundamentals suggest that Serum shows positive price behavior. Let’s explore SRM’s price prediction for 2021 and beyond.

Serum (SRM) Price Prediction 2021

The SRM token was trading at nearly 15x its IEO price of 11 cents within 12 hours of the Serum IEO on August 11, 2021. The price of the Serum continued to grow in anticipation of its availability at the end of August 2021.

The SRM coin achieved a peak of approximately $4 in the days following its introduction. SRM has retraced during the last month, but it appears to have found support near $1.20.

SRM is currently wagging at its broader bottom, with an entry point of $3.08. SRM will continue to rise after this little price decrease, giving it the appearance of a tilted J. SRM will soon reach $7.32 if the current trend continues. On the flipside, SRM’s price could fall to $3.75 if the trend reverses.

Serum (SRM) Price Prediction 2022

The price of SRM will be around $4.65 at the beginning of January 2022, while the average price of Serum for April 2022 will be $5.67. The price will be around $6.32 at the beginning of December 2022, and the average price of Serum for December 2022 will be $6.67.

Serum (SRM) Price Prediction 2023

SRM price for January 2023 is expected to be $5.44 and its price is expected to reach $9.42 by October 2023 and then $11.82 by December 2023.

Serum (SRM) Price Prediction 2024

The minimum price of SRM for January 2024 is predicted to be $11.59 and then reach $13.11 by March 2024. However, the average price of SRM during mid-2024 will be $15.18.

By December 2024, the average price of SRM is expected to be $20, representing a 12% rise in SRM’s price.

Serum (SRM) Price Prediction 2025

At the beginning of January 2025, the price of SRM will reach $18.17 and then rise to $22.80 by December 2025. However, as per bearish perspective, the SRM will fall to $17.69.

Serum (SRM) Price Prediction: Market Sentiment

The projections of various media outlets frequently vary in response to the present state of the crypto market.

Wallet Investor

The revenue is estimated to be around +973.87 percent after a 5-year investment, according to Wallet Investor. In 2025, your present $100 investment may be worth $1073.87 after five years.

By the end of December 2021, Wallet Investor predicts that Serum’s price will reach $3.53.

Digital Coin Price

Digital Coin Price expects a 62.34% increase in the price of SRM i.e., reaching $5.3 by August 2021. By December 2022, the price of SRM will reach $6.17, $6.27 by December 2023, $6.62 by December 2024, and then $10.44 by December 2025.

Coins Kid

During December 2021, the price of SRM will be $4.11, and by December 2022, it will be $6.67, according to Coins Kid. In the next five years, the SRM’s price will reach $21.31.

Tokeneo

According to Tokeneo, an all-time high price of SRM for the year 2021 is expected to be $12.53 and an all-time low price will be $0.11.

Gov Capital

Gov Capital is optimistic about Serum’s price and it is predicted to reach $12.38 by December 2021. This indicates that this asset would be a good addition to your portfolio because it seems bullish for the upcoming years.

Reddit Community

Reddit community is quite bearish about Serum’s future and predicted that its price will decline to $1.45 by the end of December 2021.

Our Serum (SRM) Price Prediction

Serum offers a user interface that is similar to those of large centralized Cryptocurrency exchanges. In comparison to other exchanges, this project looks more appealing to traders looking for transactions that are not only faster and cheaper but also easier to use.

Solana (the Blockchain on which Serum is based) has evolved into a protocol for traders, with a variety of initiatives being developed to address the needs of traders and investors in DeFi.

Therefore, is it a good idea to invest in Serum (SRM)?

Based on the fundamentals and technical analysis of Serum, it is expected that a Serum investment will yield a positive return in 2021. Because of the undulatory nature of cryptocurrencies, there is a good likelihood that SRM may return to near-all-time highs in the future. By the end of December 2021, we expect the price of SRM to be around $10.15.

Conclusion

Serum is a huge project with a lot of potential while many would dismiss it because of its large list of promises and a deranged science fiction scientist.

While the dual IEO for the SRM token appears to have been adequately balanced, just 6 million SRM were sold. To put this in context, 0.06 percent of the total supply of 10 billion SRM is being utilized.

Although this may be a vital part of ensuring the long-term viability of the Serum environment, it is nonetheless a red flag whose origins are unclear.

Project Serum still has a long way to go, and the Serum DEX is still in its early stages, but progress is being made. Within a month, the number of DEXes created on top of Serum increased from a few to around 20.

Based on Serum (SRM) price prediction, Serum seems bullish and its price is expected to reach $15 in the upcoming years.

This article contains the author’s own views and should not be regarded as investment advice. Readers are encouraged to conduct their own research. Cryptoknowmics won’t be responsible for any outcome that occurred due to insights shared in this article.